Services/ FinOp Role
Every broker/dealer is required to maintain the services of a FINRA Series 27 Financial and Operations Principal (FinOp). A FinOp oversees the books and records and monitors a FINRA member firm’s adherence to industry net capital rules, investor protections and others regulations pursuant to the terms of the Securities Investor Protection Act of 1970.
Outsource the FinOp Role
Regulators permit a licensed, outside individual to fulfill the FinOp role. Outsourcing this role benefits securities firms that choose to engage an experienced FinOp with impeccable credentials over hiring that level of talent in-house.
A CPA firm performing this outsourced function since the early 80′s, S.D. Daniels & Company, P.C. (SDDCO-PC) brings three decades of experience to broker/dealers of all sizes. Our FINRA Series 27 licensed professionals can assume the FinOp function of your broker/dealer or support your in-house FinOp.
FinOp Functions
SDDCO FinOp services include the onsite supervision of your books and records, monthly accounting and net capital computation, best practices facilitation and the periodic filing of all mandated reports. An SDDCO-PC FinOp could support or lead all aspects of this mandatory function, including:
Financial Duties
- Oversight of the member broker/dealer’s books and records
- Preparation of accurate, timely financial statements and supervision of those who assist
- Supervision and/or performance of member duties per the Securities Exchange Act of 1934 and SEC uniform net capital rules
- Computation of the monthly net capital and all related items, such as haircuts
- Monitoring of net capital compliance reporting
FINRA Filings
- Financial and Operational Combined Uniform (FOCUS) report, monthly or quarterly
- Supplemental Statement of Other Income, quarterly
- Filing the related Schedule I, annually
- Securities Investor Protection Corporation (SIPC) Report, semiannually
- FINRA Annual Assessment Report
Authority Assistance
- Interface with outside auditors during an audit exam
- Interface with regulators, as needed